Richard M. Joseph with Miller, Hall & Triggs, LLC closed on two RAD Low Income Housing Tax Credit Transactions in December 2017 benefiting the Housing Authority of the City of Rock Island, Illinois and its affiliated not for profit corporation and the Housing Authority of the City of Pine Bluff, Arkansas and its affiliated not for profit corporation.
The RAD program, administered by HUD, was established in order to give public housing authorities a powerful tool to preserve and improve public housing projects and address issues of deferred maintenance by providing for the voluntary conversion of public housing and other HUD-assisted properties to long-term, project-based Section 8 rental assistance, utilizing either project-based vouchers or project-based rental assistance contracts. RAD allows public housing agencies to leverage public and private debt and equity to help ensure that the units remain affordable to low income households.
The Rock Island, Illinois project made possible the conversion and rehabilitation of 141 units in an eleven story apartment building through the use of 4% low income housing tax credits generating $3,590,410 in equity, $6,100,000 Multi-family Housing Revenue Bonds issued through the Illinois Housing Development Authority, $4,487,200 non-recourse loan through the HUD 223(f) program, and use of Public Housing Operating Reserve Funds and Replacement Housing Factor Funds.
The Pine Bluff, Arkansas project made possible the conversion and substantial rehabilitation of 251 units in four separate apartment complexes through the use of 4% low income housing tax credits generating $5,557,636 in equity, $10,500,000 Multi-family Housing Revenue Bonds issued through the Arkansas Development Finance Authority, $7,055,400 non –recourse loan through the HUD 223(f) program and use of Public Housing Operating Reserve Funds and Public Housing Capital Funds.